Question

Discuss the possible approaches of increasing supply chain resource's efficiency

Answer 1

Resource efficiency has been important to both business organizations and governments. Supply chain resource efficiency will culminate in the more productive and cost-effective supply chains that face minimal wastages and have better material circularity. The efficiency will reflect in supply chain stages including procurement, data management, product/service/business model designs, and others. Resource efficiency in the supply chain will also result in reducing the carbon footprint. Some of the possible approaches to increasing supply chain resource efficiency are given below.

Procurement practices demanding resource-efficient offerings

The government can implement the regulations through which supply chain resource efficiency can be advanced in procurement practices. The government especially need to engage the supplier businesses and discuss resource efficiency and corporate social responsibility and sustainability goals.

Collaboration and sharing of data

Databases relating to resource availability should be applied to the enterprise resource planning systems, which will help the procurement managers and supervisors make well-informed decisions and also provide for better collaboration. This would be very useful in specific areas including reverse logistics as well as waste exchange. The use of data will reduce untoward events for the supply chains including the "supply shocks". The sharing of data in real-time provides alternative routes for better supply chain management as well.

Improving accountability

Data and intelligent systems based on it will enhance visibility and improve accountability so that the supply chains and resources within do not appear to be diminishing. Business intelligence and the use of data and other technologies will reduce wastage as well while also increasing profitability for the firms.

Reducing multiple supplier layers

Apart from business practices, certain cultural practices also cause multi-layered supplier systems, which are a cause of inefficiency and wastage. The organizations should be able to work on horizontal scales with the suppliers and should aim to have sustainable, ethical, and transparent supply chains. A lesser number of suppliers that are engaged better will provide for more resource-efficient supply chains and would also contribute positively to global sustainability.

Approaches to resource efficiency may also include other areas. For instance, the products and business offering should be designed keeping in mind their next life. Business organizations, as well as the government, should appreciate and reward resource efficiency improving projects, innovations, and sucessful approaches.